International Relations Essay Example | Topics and Well Written Essays - 500 words - 10

International Relations - Essay idealSection 3(a) of the IMF funds agreement requires the funding to adopt policies towards using resources (Goldstein et al. 480) as well as the special policies for special balance of payments problems. These policies will assist members to solve their balance of payments problems in a modality consistent with the provisions of this agreement ad that will establish adequate safeguards for the temporary use of the global resources of the fund (IMF 2002). Additionally, the initiative will stipulate the IMF and encourage the borrowing countries to affect their policy changes in a way that may help the country to repay its debt without having to affect negatively the IMF. The countries must therefore remove a legal agreement that binds them to compliance with the Fund conditionalities. However, the least developed countries have been given better conditions in that the IMF has undertaken a review of its conditionality to poor countries in order to st reamline them to Poverty Reduction process facility (PRGF). As a result, public sector, employment, trade policy, public enterprise re habituss, privatization, social security, pricing and taxonomical reforms have been included in the agreement. As a result, least developed countries have been given much conditionalities as compared to the developed countries.As a tercet world leader, accepting most of the conditionality given to the third world countries is an economic Suicide. They may subject the economy to a series of problems encompassed with huge debts and softness to owner the funds agreement. Section 3(a) for instance is an infringement of the economy of a country. It translates to a form of neo-colonialism in which the recipient country has to reform and implement its national economic policies in accordance to what an impertinent body demands. It inhibits the sovereignty of a state to act within its limits